As we
celebrate Africa Day and all the continent’s historical accomplishments, let’s
also look ahead and determine how best we can up the ante in terms of trade so
that Africa does not lose out on the benefits of it. The scales of
international trading need to be balanced with the world’s poorest nations,
especially Africa, to achieve fairness.
celebrate Africa Day and all the continent’s historical accomplishments, let’s
also look ahead and determine how best we can up the ante in terms of trade so
that Africa does not lose out on the benefits of it. The scales of
international trading need to be balanced with the world’s poorest nations,
especially Africa, to achieve fairness.
Africa
has lots to offer the world and it could easily become the world’s food basket
and be a force to be reckoned with. But for this to happen trade needs to be
favourable and not tilted towards more developed nations with huge export
capacity and greater competitiveness. To ensure fairness of trade, Africa needs
to be on the same level.
has lots to offer the world and it could easily become the world’s food basket
and be a force to be reckoned with. But for this to happen trade needs to be
favourable and not tilted towards more developed nations with huge export
capacity and greater competitiveness. To ensure fairness of trade, Africa needs
to be on the same level.
The
debate on trade is a contentious one with many arguing that free trade will
never exist, and that policies on trade should be in the public interest.
debate on trade is a contentious one with many arguing that free trade will
never exist, and that policies on trade should be in the public interest.
Let’s for
a moment look at the signing of the recent African Continental Free Trade Area
(CFTA). On 21 March 2018, the CFTA was signed in Rwanda, which was advanced by
the African Union in accordance with its 2063 Agenda. It details a long-term
development plan to create the largest free trade area in the world. It aims to
create a single African market for goods and services, with free movement of
business persons and investments, by liberalising trade and making it easier
for African businesses to trade within Africa. The AU predicted that this plan
would increase the level of intra-African trade by 60% by 2022. It hopes to
gradually eliminate tariff barriers between member States to ease doing
cross-border business.
a moment look at the signing of the recent African Continental Free Trade Area
(CFTA). On 21 March 2018, the CFTA was signed in Rwanda, which was advanced by
the African Union in accordance with its 2063 Agenda. It details a long-term
development plan to create the largest free trade area in the world. It aims to
create a single African market for goods and services, with free movement of
business persons and investments, by liberalising trade and making it easier
for African businesses to trade within Africa. The AU predicted that this plan
would increase the level of intra-African trade by 60% by 2022. It hopes to
gradually eliminate tariff barriers between member States to ease doing
cross-border business.
The
agreement, with a predicted cumulative GDP of $2.5 trillion, may look really
good on paper but will it in reality be conclusively implemented, completed and
monitored? Surely our leaders need to be accountable to the people of Africa
for what they sign. They need to explain what the strategy entails, provide an
outline of the plan, detail how will it be implemented, clarify who will be
monitoring deliverables, and illustrate how output will be measured. Africa has
been scarred by politicians who love signing agreements and creating huge
publicity for a moment, with Africa’s people not seeing the results in the long
term.
agreement, with a predicted cumulative GDP of $2.5 trillion, may look really
good on paper but will it in reality be conclusively implemented, completed and
monitored? Surely our leaders need to be accountable to the people of Africa
for what they sign. They need to explain what the strategy entails, provide an
outline of the plan, detail how will it be implemented, clarify who will be
monitoring deliverables, and illustrate how output will be measured. Africa has
been scarred by politicians who love signing agreements and creating huge
publicity for a moment, with Africa’s people not seeing the results in the long
term.
Only 10
AU members chose not to sign the CFTA including Africa’s largest economy,
Nigeria. President Muhammadu Buhari has been quoted as saying that his administration
will not be in a hurry to enter into any agreement that would make the country
a dumping ground and jeopardize the security of the nation. In my opinion,
these are real considerations one should take into account to determine whether
it has merit or not.
AU members chose not to sign the CFTA including Africa’s largest economy,
Nigeria. President Muhammadu Buhari has been quoted as saying that his administration
will not be in a hurry to enter into any agreement that would make the country
a dumping ground and jeopardize the security of the nation. In my opinion,
these are real considerations one should take into account to determine whether
it has merit or not.
Last
month, writer David Pilling in an opinion piece in the Financial Times said the
CFTA could unlock Africa’s potential, even though the principles of free trade
were under ideological attack in many parts of the world.
month, writer David Pilling in an opinion piece in the Financial Times said the
CFTA could unlock Africa’s potential, even though the principles of free trade
were under ideological attack in many parts of the world.
“Africa
needs free trade for many reasons. The most important is to remake history,” he
said in the article.
needs free trade for many reasons. The most important is to remake history,” he
said in the article.
“Colonialism
left Africa in bad shape to develop. It broke the continent into more than 50
pieces, few of which today have the scale to attract sufficient investment or
ramp up manufacturing. The whole of Africa has a gross domestic product of
about $2.5tn, roughly the same as the UK. Imagine if Britain were broken up
into 54 units, each with its own politics, language, regulatory environment and
hard border.”
left Africa in bad shape to develop. It broke the continent into more than 50
pieces, few of which today have the scale to attract sufficient investment or
ramp up manufacturing. The whole of Africa has a gross domestic product of
about $2.5tn, roughly the same as the UK. Imagine if Britain were broken up
into 54 units, each with its own politics, language, regulatory environment and
hard border.”
He said
that even if they tried, many post-colonial African governments were unable to
break the basic pattern of trade: ship raw materials out and bring manufactured
goods in. Most African economies were stuck as suppliers of basic commodities
and missing out on the classic benefits of international trade.
that even if they tried, many post-colonial African governments were unable to
break the basic pattern of trade: ship raw materials out and bring manufactured
goods in. Most African economies were stuck as suppliers of basic commodities
and missing out on the classic benefits of international trade.
Trading
with each other was a way out of that bind, he said.
with each other was a way out of that bind, he said.
Meanwhile,
Debate Wise argues that poorer countries will suffer due to the ‘unfairness’
and ‘expensive’ nature of free trade agreements. It believes poor countries
will ultimately abandon free trade agreements, and it would cause more harm
than benefits.
Debate Wise argues that poorer countries will suffer due to the ‘unfairness’
and ‘expensive’ nature of free trade agreements. It believes poor countries
will ultimately abandon free trade agreements, and it would cause more harm
than benefits.
Africa
can continue to rise if the scales of trade were tilted toward poorer nations
that have a huge basket, filled with a variety of commodities and goods to
offer. It has an abundance in natural resources and mineral reserves, and holds
about 98% of the world’s chromium, 90% of the its cobalt and platinum, 70%
of the world’s tantalite, 64% of its manganese, 50% of its gold and one-third
of its uranium. Guinea is the world’s largest exporter of bauxite and the
Democratic Republic of Congo has more than 30% of the world’s diamond reserves.
can continue to rise if the scales of trade were tilted toward poorer nations
that have a huge basket, filled with a variety of commodities and goods to
offer. It has an abundance in natural resources and mineral reserves, and holds
about 98% of the world’s chromium, 90% of the its cobalt and platinum, 70%
of the world’s tantalite, 64% of its manganese, 50% of its gold and one-third
of its uranium. Guinea is the world’s largest exporter of bauxite and the
Democratic Republic of Congo has more than 30% of the world’s diamond reserves.
Africa
remains the poorest and most underdeveloped continent in the world, despite
technological advances and massive efforts over the past two decades to change
the status quo. Surely, the time for written agreements that remain
unimplemented are over. Now is the time for action.
remains the poorest and most underdeveloped continent in the world, despite
technological advances and massive efforts over the past two decades to change
the status quo. Surely, the time for written agreements that remain
unimplemented are over. Now is the time for action.
